Cingular Wireless Announces Fourth-Quarter 2005 Results

ATLANTA, Jan. 24 /PRNewswire/ -- Cingular Wireless LLC, which is a joint venture between AT&T Inc., formerly SBC Communications Inc. , and BellSouth Corporation , today reported solid fourth-quarter results driven by its best-ever overall churn, record net customer additions, strong gross additions, progress on merger initiatives, growth of data ARPU, and strength in enterprise services.

For the quarter, the nation's largest wireless provider reported monthly subscriber churn of 2.1 percent -- its lowest ever. This represents an improvement of 30 basis points* over the year-ago fourth quarter and a sequential improvement of 20 basis points. Postpaid churn improved sequentially by 10 basis points to 1.9 percent.

Driven in part by its churn results, Cingular also reported a record 1.8 million net customer additions, which is more than double the number reported in the third quarter of 2005 and compares to 1.7 million pro forma net additions in the fourth quarter of 2004.

Retail customers accounted for approximately 840 thousand net adds for the fourth quarter of 2005, with the rest coming from resellers. Retail net adds resulted from steady growth in postpaid customers and increased growth in Cingular's popular GoPhone (R) prepaid offers.

Gross additions were 5.1 million, which is a sequential improvement of 750 thousand customers and less than 100 thousand on a comparable basis from pro forma gross additions in the fourth quarter of 2004*. The sequential improvement in gross adds was primarily driven by holiday buying activity of prepaid and reseller customers.

Cingular ended 2005 with 54.1 million cellular/PCS subscribers, an increase of 5 million over 2004.

Cingular's data ARPU was $4.71, up 63 percent over the year-ago fourth quarter and a sequential improvement of 9 percent. The company's Business Markets Group signed more than 800 high-end service contracts in the fourth quarter of 2005.

Normalized OIBDA margins for the fourth quarter of 2005 were 31.0 percent, which is an improvement of 760 basis points compared to normalized year-ago fourth quarter results but a sequential decline of 60 basis points from normalized OIBDA margins for the third quarter of 2005 due to anticipated seasonal factors.**

"Cingular finished 2005 on a high note," said Stan Sigman, Cingular's president and chief executive officer. "Our best-ever churn, record net customer additions, the fourth straight quarter of accelerating revenue growth, rising data ARPU, solid margins, and on-target merger initiatives indicate that America's largest wireless company is taking the right steps to become the most highly regarded wireless company in the world.

"I am also pleased that we continue to bring out a steady stream of innovative offers and capabilities - from even easier access to the wireless Internet, to the ability to view exciting new video content, to productivity boosting devices and applications. These are making a real difference in the lives of our customers," Sigman said.

Strong net and gross additions and continued retention of former AT&T Wireless customers

Cingular's "more bars in more places" (SM) and ALLOVER (SM) network messages continue to resonate with our customers, driving Cingular's strong showing in net and gross subscriber additions. In addition, the Company continued to transition its customer base to GSM and move former AT&T Wireless customers to Cingular plans.

During the fourth quarter of 2005, 95 percent of minutes were carried on Cingular's GSM network and 86 percent of the company's subscriber base was GSM-equipped. Approximately 7 percent of Cingular's customer base upgraded handsets during the fourth quarter.

Cingular has now converted nearly 7 million former AT&T Wireless subscribers to new Cingular plans as customers continue to respond positively to Cingular's broad network coverage and innovative products and services.

Cingular operates the nation's largest digital voice and data network. GSM is the world's most widely used wireless technology. Through roaming alliances with other GSM-based providers around the world, Cingular provides the largest global presence of any U.S. wireless carrier, with voice coverage in more than 180 countries and data roaming in more than 100.

Financial Results - In the fourth quarter of 2005, Cingular's revenues were $8.8 billion, an improvement of 9.4 percent over pro forma revenues during the fourth quarter of 2004 and 1.2 percent versus the third quarter of 2005. - Average revenue per user (ARPU) in the fourth quarter of 2005 was $48.86, which was down 2.2 percent from pro forma ARPU in the fourth quarter of 2004. This represents an improvement over the 5.2 percent year-over-year ARPU decline in the third quarter of 2005. ARPU reflects continued pressure on voice revenues as the wireless market becomes more penetrated and lower-revenue customers enter the category, though these impacts were substantially offset by continued increase in data ARPU. - ARPU from data services continued its strong growth in the fourth quarter of 2005, increasing 63 percent to $4.71 compared to fourth quarter of 2004 and 9 percent compared to the third quarter of 2005. This growth was spurred by the increasing popularity of downloadable games, ringtones, mobile instant messaging, mobile email, photo messaging, and media bundles. In addition, text messaging continued to grow. In the fourth quarter of 2005, Cingular had nearly 24 million active data customers, and delivered 72 million multi-media messages and 6.1 billion text messages. - Cingular's 2005 reported fourth-quarter operating expenses were $8.3 billion. [Operating expenses included $326 million of merger- related integration costs, $381 million in non-cash amortization of merger-related intangibles, and $20 million of hurricane-related cash expenses. Cingular is now conforming its normalized financial reporting to align with industry norms. Normalized results will exclude the non-cash amortization of purchased intangibles created by Cingular's acquisition of AT&T Wireless. Post-merger prior periods have been recast for this change, and all references for the fourth quarter of 2005 and the full year of 2005 are in comparison to the conformed amounts. This change has no impact on revenues or OIBDA margins, will lower operating expenses, and will increase normalized operating income and normalized net income from non-normalized levels.] - Reported OIBDA margin was 29.3 percent, the highest since the merger and the fourth straight quarter of sequential OIBDA improvement. Normalized OIBDA margin was 31.0 percent, which is an improvement of 760 basis points compared to the year-ago fourth quarter and a sequential decline of 60 basis points due to anticipated seasonal factors. - Reported operating income for the fourth quarter of 2005 was $549 million. Normalized operating income was $1.3 billion. - Reported net income in the fourth quarter of 2005 was $204 million. Normalized net income was $811 million. Fourth-quarter highlights and initiatives - In the fourth quarter of 2005, Cingular became the first carrier in the world to operate a commercial UMTS/HSDPA network, which provides us with industry-leading data throughputs with speeds of 400 to 700 Kbps and leverages Cingular's network investment for incremental voice capacity at a significantly lower cost. Cingular deployed UMTS/HSDPA in 16 markets during the quarter, and plans to have most of the United States' top 100 markets launched by the end of 2006. - To make the wireless Internet even easier to use, Cingular launched a significant upgrade to its MEdia Net service, which offers customers fast, individualized access to their favorite online content. The service comes with a built-in parental control feature that helps families manage their wireless Internet experience. - Cingular unveiled a key component of MEdia Net called Cingular Video (TM), an on-demand streaming video service, and entered into a partnership with HBO to give consumers exclusive content through Cingular Video. - Cingular brought to market a Push-to-Talk (PTT) offer, which includes unmatched capabilities such as the largest PTT coverage in the United States and the ability to convert a PTT call to a regular wireless call with the touch of a button. - Cingular's Business Markets Group continued to introduce innovative new products, services, and alliances. These included the HP iPAQ hw6500 series Mobile Messenger, which is available exclusively through Cingular in the United States. Cingular also forged an alliance with the European wireless carrier Orange SA to provide consolidated mobile services to multi-national companies through Cingular's WorldView program, and introduced the Cingular Wireless Enterprise Paging service. - The Business Markets Group also signed more than 800 new and renewed high-end service contracts during the fourth quarter of 2005. These included business and government accounts such as Ferrellgas, City of Chicago Public Schools, Pearson Corporation, State of Maryland, City National Bank, and Pro Tech Monitoring, among many others. Conference Call with Investment Community

Cingular will hold a conference call with the investment community beginning at 10:00 a.m. (ET) today. During the call, we will discuss our operational and financial results for the quarter.

The conference call will be webcast and archived on our website at http://www.cingular.com/investor for 30 days, as well as on the websites of AT&T, Inc. and BellSouth Corporation. Our fourth-quarter news release and downloadable financial statements are also available on that website.

Dial-in information for the conference call is as follows: Domestic: 866-406-3487 International: 630-691-2771 Replay: 877-213-9653 (Domestic) Replay: 630-652-3041 (International) Passcode: 13502948# Replays will be available for five days.

* Overall churn and gross adds in the fourth quarter of 2004 reflect the first-quarter 2005 adjustment Cingular made in how it calculated reseller churn as if that adjustment had occurred in the fourth quarter of 2004.

** OIBDA margin is operating income (loss) before depreciation and amortization, divided by total service revenues. OIBDA margins and comparative calculations mentioned in the news release reflect normalization for merger-related integration costs and, for the third and fourth quarters of 2005, expenses related to Hurricanes Katrina and Rita.

About Cingular Wireless

Cingular Wireless is the largest wireless carrier in the United States, serving 54.1 million customers. Cingular, a joint venture between AT&T Inc., formerly SBC Communications Inc., , and BellSouth Corporation , has the largest digital voice and data network in the nation -- the ALLOVER (SM) network -- and the largest mobile-to-mobile community of any national wireless carrier. Cingular is the only U.S. wireless carrier to offer Rollover (SM), the wireless plan that lets customers keep their unused monthly minutes. Details of the company are available at http://www.cingular.com/. Get Cingular Wireless press releases e-mailed to you automatically. Sign up at http://www.cingular.com/newsroom.

FORWARD-LOOKING INFORMATION

In addition to historical information, this document and the conference call referred to above may contain forward-looking statements regarding events and financial trends. Factors that could affect future results and could cause actual results to differ materially from those expressed or implied in the forward-looking statements include:

-- the pervasive and intensifying competition in all markets where Cingular operates; -- failure to quickly realize capital and expense synergies from the acquisition of AT&T Wireless as a result of technical, logistical, regulatory and other factors; -- delays or inability of vendors to deliver hardware, software, handsets or network equipment; -- problems associated with the transition of Cingular's network to higher-speed technologies; -- slow growth of Cingular's data services due to lack of popular applications, terminal equipment, advanced technology and other factors; -- sluggish economic and employment conditions in the markets Cingular serves; -- the final outcome of FCC proceedings, including rulemakings, and judicial review, if any, of such proceedings; -- enactment of additional state and federal laws, regulations and requirements pertaining to Cingular's operations; and -- the outcome of pending or threatened complaints and litigation.

Such forward-looking information is given as of this date only, and Cingular assumes no duty to update this information.

Cingular Wireless LLC Income Statement - amounts in millions (unaudited) Quarter Ended Year to Date 12/31/05 12/31/04 % 12/31/05 12/31/04 % Change Change Operating revenues: Service revenues $7,779 $6,313 23.2% $30,638 $17,602 74.1% Equipment sales 1,070 806 32.8% 3,795 1,963 93.3% Total operating revenues 8,849 7,119 24.3% 34,433 19,565 76.0% Operating expenses: Cost of services 2,417 1,692 42.8% 9,318 4,737 96.7% Cost of equipment sales 1,341 1,247 7.5% 5,069 2,874 76.4% Selling, general and administrative 2,812 2,947 (4.6%) 11,647 7,349 58.5% Depreciation and amortization 1,730 1,386 24.8% 6,575 3,077 113.7% Total operating expenses 8,300 7,272 14.1% 32,609 18,037 80.8% Operating income (loss) 549 (153) 458.8% 1,824 1,528 19.4% Interest expense 292 303 (3.6%) 1,260 900 40.0% Minority interest expense 7 (2) 450.0% 102 86 18.6% Equity in net income (loss) of affiliates 1 (114) 100.9% 5 (415) 101.2% Other income (expense), net 1 11 (90.9%) 64 16 300.0% Income (loss) before income tax provision 252 (557) 145.2% 531 143 271.3% Provision (benefit) for income taxes 48 (62) 177.4% 198 (58) 441.4% Net income (loss) 204 (495) 141.2% 333 201 65.7% Selected Financial and Operating Data for Cingular Wireless - amounts in millions, except customer data in 000s Quarter Ended Year to Date 12/31/05 12/31/04 % 12/31/05 12/31/04 % Change Change (Amounts in millions, except customer data in 000s) OIBDA (1) $2,279 $1,233 84.8% $8,399 $4,605 82.4% OIBDA margin (2) 29.3% 19.5% 980 BP 27.4% 26.2% 120 BP Total Cellular/PCS Customers (3) 54,144 49,132 10.2% 54,144 49,132 10.2% Net Customer Additions - Cellular/PCS 1,820 1,699 7.1% 5,006 3,338 50.0% M&A Activity, Partitioned Customers and/or Other Adjs. 32 21,761 6 21,767 Churn - Cellular/PCS (4) 2.1% 2.6% -50 BP 2.2% 2.7% -50 BP ARPU - Cellular/PCS (5) $48.86 $49.51 (1.3%) $49.65 $49.68 (0.1%) Minutes Of Use Per Cellular/PCS Subscriber (6) 727 617 17.8% 701 584 20.0% Licensed POPs - Cellular/PCS (7) 294 291 1.0% 294 291 1.0% Penetration - Cellular/ PCS (8) 18.9% 17.2% 10.0% 18.9% 17.2% 10.0% Capital Expenditures (9) 2,970 1,698 74.9% 7,475 3,449 116.7% Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures - amounts in millions (unaudited) Quarter Ended Year to Date 12/31/05 12/31/04 % 12/31/05 12/31/04 % Change Change Net income (loss) 204 (495) 141.2% 333 201 65.7% Plus: Interest expense 292 303 (3.6%) 1,260 900 40.0% Plus: Minority interest expense 7 (2) 450.0% 102 86 18.6% Plus: Equity in net loss of affiliates (1) 114 NM (5) 415 NM Plus: Other, net (1) (11) NM (64) (16) NM Plus: Provision (benefit) for income taxes 48 (62) NM 198 (58) NM Operating income (loss) 549 (153) 458.8% 1,824 1,528 19.4% Plus: Depreciation and amortization 1,730 1,386 24.8% 6,575 3,077 113.7% OIBDA (1) $2,279 $1,233 84.8% $8,399 $4,605 82.4% NM - Not Meaningful Notes: (1) OIBDA is defined as operating income (loss) before depreciation and amortization. OIBDA differs from operating income (loss), as calculated in accordance with GAAP, in that it excludes depreciation and amortization. It differs from net income (loss), as calculated in accordance with GAAP, in that it excludes, as presented on our Consolidated Statement of Income: (1) depreciation and amortization, (2) interest expense, (3) minority interest expense, (4) equity in net income (loss) of affiliates, (5) other, net, and (6) provision (benefit) for income taxes. OIBDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. OIBDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with generally accepted accounting principles. Our calculation of OIBDA, as presented, may differ from similarly titled measures reported by other companies. (2) OIBDA margin is defined as OIBDA divided by service revenues. (3) Cellular/PCS customers include customers served through reseller agreements. (4) Cellular/PCS churn is calculated by dividing the aggregate number of cellular/PCS customers who cancel service during each month in a period by the total number of cellular/PCS customers at the beginning of each month in that period. (5) ARPU is defined as cellular/PCS service revenues during the period divided by average cellular/PCS customers during the period. (6) Total Minutes Of Use Per Cellular/PCS Subscriber definition was changed effective with the 2Q05 reporting period. Prior to the change, the numerator was defined as Local Minutes of Use. Effective with this change, the numerator is now defined as including Local Minutes of Use and Outcollect Minutes of Use. (7) Licensed POPs refers to the number of people residing in areas where we and our partners have licenses to provide cellular or PCS service, including areas where we have not yet commenced service. (8) Penetration calculation for 4Q05 is based on licensed "operational" POP's of 286 million. (9) Capital expenditures reflect GAAP disclosure and accordingly do not include cash/capital contributed to our previous joint ventures with T-Mobile and AT&T Wireless (pre-merger). Cingular Wireless LLC Reconciliation of Reported Results to Normalized Results (amounts in millions) Quarter Ended December 31, 2005 Normalized Items AWE Integra- Amortiza- Hurri- tion tion cane Costs Expense Costs Normal- GAAP (1) (2) (3) ized Operating revenues: Service revenues $7,779 $- $- $- $7,779 Equipment sales 1,070 - - - 1,070 Total operating revenues 8,849 - - - 8,849 Operating expenses: Cost of services 2,417 (72) - (19) 2,326 Cost of equipment sales 1,341 - - - 1,341 Selling, general and administrative 2,812 (38) - (1) 2,773 Depreciation and amortization * 1,730 (216) (381) - 1,133 Total operating expenses 8,300 (326) (381) (20) 7,573 Operating income (loss) 549 326 381 20 1,276 Interest expense 292 - - - 292 Minority interest expense 7 - - - 7 Equity in net income (loss) of affiliates 1 - - - 1 Other income (expense), net 1 - - - 1 Income (loss) before income tax provision 252 326 381 20 979 Provision (benefit) for income taxes 48 54 63 3 168 Net income (loss) 204 272 318 17 811 Year to Date - December 31, 2005 Normalized Items AWE Integra- Amortiza- Hurri- tion tion cane Costs Expense Costs Normal- GAAP (1) (2) (3) ized Operating revenues: Service revenues $30,638 $- $- $- $30,638 Equipment sales 3,795 - - - 3,795 Total operating revenues 34,433 - - - 34,433 Operating expenses: Cost of services 9,318 (195) - (97) 9,026 Cost of equipment sales 5,069 - - - 5,069 Selling, general and administrative 11,647 (264) - (19) 11,364 Depreciation and amortization * 6,575 (417) (1,713) - 4,445 Total operating expenses 32,609 (876) (1,713) (116) 29,904 Operating income (loss) 1,824 876 1,713 116 4,529 Interest expense 1,260 - - - 1,260 Minority interest expense 102 - - - 102 Equity in net income (loss) of affiliates 5 - - - 5 Other income (expense), net 64 - - - 64 Income (loss) before income tax provision 531 876 1,713 116 3,236 Provision (benefit) for income taxes 198 144 282 19 643 Net income (loss) 333 732 1,431 97 2,593 Notes to Normalized Financial Data Our normalized earnings have been adjusted for the following: (1) Tax-effected integration costs resulting from the Cingular acquisition of AT&T Wireless. (2) Tax-effected amortization expense associated with intangible assets recorded for the AT&T Wireless acquisition. (3) Tax-effected operating costs resulting from hurricanes Katrina and Rita. Cingular Wireless LLC Income Statement, NORMALIZED - amounts in millions (unaudited) Quarter Ended Year to Date 12/31/05 12/31/04 % 12/31/05 12/31/04 % Change Change Operating revenues: Service revenues $7,779 $6,313 23.2% $30,638 $17,602 74.1% Equipment sales 1,070 806 32.8% 3,795 1,963 93.3% Total operating revenues 8,849 7,119 24.3% 34,433 19,565 76.0% Operating expenses: Cost of services 2,326 1,685 38.0% 9,026 4,729 90.9% Cost of equipment sales 1,341 1,244 7.8% 5,069 2,871 76.6% Selling, general and administrative 2,773 2,712 2.2% 11,364 7,072 60.7% Depreciation and amortization 1,133 988 14.7% 4,445 2,679 65.9% Total operating expenses 7,573 6,629 14.2% 29,904 17,351 72.3% Operating income (loss) 1,276 490 160.4% 4,529 2,214 104.6% Interest expense 292 303 (3.6%) 1,260 900 40.0% Minority interest expense 7 (2) 450.0% 102 86 18.6% Equity in net income (loss) of affiliates 1 (114) 100.9% 5 (415) NM Other income (expense), net 1 11 (90.9%) 64 16 NM Income (loss) before income tax provision 979 86 NM 3,236 829 290.3% Provision (benefit) for income taxes 168 39 330.8% 643 43 NM Net income (loss) 811 47 NM 2,593 786 229.9% Selected Financial and Operating Data for Cingular Wireless - amounts in millions, except customer data in 000s Quarter Ended Year to Date 12/31/05 12/31/04 % 12/31/05 12/31/04 % Change Change (Amounts in millions, except customer data in 000s) OIBDA - normalized (1) $2,409 $1,478 63.0% $8,974 $4,893 83.4% OIBDA margin - normalized (2) 31.0% 23.4% 760 BP 29.3% 27.8% 150 BP Total Cellular/PCS Customers (3) ** 54,144 49,132 10.2% 54,144 49,132 10.2% Net Customer Additions - Cellular/PCS ** 1,820 1,699 7.1% 5,006 3,338 50.0% M&A Activity, Partitioned Customers and/or Other Adjs. ** 32 21,761 6 21,767 Churn - Cellular/PCS (4) ** 2.1% 2.6% -50 BP 2.2% 2.7% -50 BP ARPU - Cellular/PCS (5) ** $48.86 $49.51 (1.3%) $49.65 $49.68 (0.1%) Minutes Of Use Per Cellular/PCS Subscriber (6) ** 727 617 17.8% 701 584 20.0% Licensed POPs - Cellular/PCS (7) ** 294 291 1.0% 294 291 1.0% Penetration - Cellular/ PCS (8) ** 18.9% 17.2% 10.0% 18.9% 17.2% 10.0% Capital Expenditures (9) ** 2,970 1,698 74.9% 7,475 3,449 116.7% Reconciliations of Normalized Financial Measures to Normalized OIBDA and OIBDA Margin - amounts in millions (unaudited) Quarter Ended Year To Date 12/31/05 12/31/04 % 12/31/05 12/31/04 % Change Change Net income (loss) 811 47 NM 2,593 786 229.9% Plus: Interest expense 292 303 (3.6%) 1,260 900 40.0% Plus: Minority interest expense 7 (2) NM 102 86 18.6% Plus: Equity in net loss of affiliates (1) 114 (100.9%) (5) 415 (101.2%) Plus: Other, net (1) (11) NM (64) (16) NM Plus: Provision (benefit) for income taxes - normalized 168 39 NM 643 43 NM Operating income (loss) - normalized 1,276 490 160.4% 4,529 2,214 104.6% Plus: Depreciation and amortization - normalized 1,133 988 14.7% 4,445 2,679 65.9% OIBDA - normalized (1) $2,409 $1,478 63.0% $8,974 $4,893 83.4% OIBDA margin (2) 29.3% 19.5% 980 BP 27.4% 26.2% 120 BP Plus: OIBDA margin, integration and hurricane costs 1.7% 3.9% -220 BP 1.9% 1.6% 30 BP OIBDA margin - normalized 31.0% 23.4% 760 BP 29.3% 27.8% 150 BP NM - Not Meaningful ** Denotes metrics and calculations in this chart that are not impacted by the 4Q05 and YTD 2005 normalization of merger integration costs, AT&T Wireless intangibles amortization expenses, and hurricane costs. Notes: (1) OIBDA is defined as operating income (loss) before depreciation and amortization. OIBDA differs from operating income (loss), as calculated in accordance with GAAP, in that it excludes depreciation and amortization. It differs from net income (loss), as calculated in accordance with GAAP, in that it excludes, as presented on our Consolidated Statement of Income: (1) depreciation and amortization, (2) interest expense, (3) minority interest expense, (4) equity in net income (loss) of affiliates, (5) other, net, and (6) provision (benefit) for income taxes. OIBDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. OIBDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with generally accepted accounting principles. Our calculation of OIBDA, as presented, may differ from similarly titled measures reported by other companies. (2) OIBDA margin is defined as OIBDA divided by service revenues. (3) Cellular/PCS customers include customers served through reseller agreements. (4) Cellular/PCS churn is calculated by dividing the aggregate number of cellular/PCS customers who cancel service during each month in a period by the total number of cellular/PCS customers at the beginning of each month in that period. (5) ARPU is defined as cellular/PCS service revenues during the period divided by average cellular/PCS customers during the period. (6) Total Minutes Of Use Per Cellular/PCS Subscriber definition was changed effective with the 2Q05 reporting period. Prior to the change, the numerator was defined as Local Minutes of Use. Effective with this change, the numerator is now defined as including Local Minutes of Use and Outcollect Minutes of Use. (7) Licensed POPs refers to the number of people residing in areas where we and our partners have licenses to provide cellular or PCS service, including areas where we have not yet commenced service. (8) Penetration calculation for 4Q05 is based on licensed "operational" POP's of 286 million. (9) Capital expenditures reflect GAAP disclosure and accordingly do not include cash/capital contributed to our previous joint ventures with T-Mobile and AT&T Wireless (pre-merger). Cingular Wireless LLC Income Statement - amounts in millions (unaudited) Full Year 2002 03/31/03 06/30/03 09/30/03 12/31/03 Operating revenues: Service revenues $13,922 $3,414 $3,643 $3,701 $3,559 Equipment sales 981 244 255 383 378 Total operating revenues 14,903 3,658 3,898 4,084 3,937 Operating expenses: Cost of services 3,594 849 921 1,035 970 Cost of equipment sales 1,535 396 451 606 578 Selling, general and administrative 5,429 1,218 1,271 1,442 1,497 Depreciation and amortization 1,849 488 508 521 572 Total operating expenses 12,407 2,951 3,151 3,604 3,617 Operating income (loss) 2,496 707 747 480 320 Interest expense 911 225 230 197 204 Minority interest expense 123 24 35 25 17 Equity in net income (loss) of affiliates (274) (74) (78) (90) (91) Other income (expense), net 29 26 7 4 4 Income (loss) before income tax provision 1,217 410 411 172 12 Provision (benefit) for income taxes 12 2 12 6 8 Net income (loss) 1,205 408 399 166 4 Cingular Wireless LLC Income Statement - amounts in millions (unaudited) 03/31/04 06/30/04 09/30/04 12/31/04 Operating revenues: Service revenues $3,583 $3,833 $3,873 $6,313 Equipment sales 384 354 419 806 Total operating revenues 3,967 4,187 4,292 7,119 Operating expenses: Cost of services 955 983 1,107 1,692 Cost of equipment sales 537 505 585 1,247 Selling, general and administrative 1,372 1,463 1,567 2,947 Depreciation and amortization 553 565 573 1,386 Total operating expenses 3,417 3,516 3,832 7,272 Operating income (loss) 550 671 460 (153) Interest expense 198 199 200 303 Minority interest expense 27 41 20 (2) Equity in net income (loss) of affiliates (108) (95) (98) (114) Other income (expense), net 4 1 - 11 Income (loss) before income tax provision 221 337 142 (557) Provision (benefit) for income taxes 6 (2) - (62) Net income (loss) 215 339 142 (495) Cingular Wireless LLC Income Statement - amounts in millions (unaudited) 03/31/05 06/30/05 09/30/05 12/31/05 Operating revenues: Service revenues $7,419 $7,719 $7,721 $7,779 Equipment sales 810 890 1,025 1,070 Total operating revenues 8,229 8,609 8,746 8,849 Operating expenses: Cost of services 2,144 2,293 2,464 2,417 Cost of equipment sales 1,295 1,230 1,203 1,341 Selling, general and administrative 3,001 2,953 2,881 2,812 Depreciation and amortization 1,675 1,629 1,541 1,730 Total operating expenses 8,115 8,105 8,089 8,300 Operating income (loss) 114 504 657 549 Interest expense 338 326 304 292 Minority interest expense 16 41 38 7 Equity in net income (loss) of affiliates 2 1 1 1 Other income (expense), net 20 33 10 1 Income (loss) before income tax provision (218) 171 326 252 Provision (benefit) for income taxes 22 24 104 48 Net income (loss) (240) 147 222 204 Selected Financial and Operating Data for Cingular Wireless - amounts in millions, except customer data in 000s Full Year 2002 03/31/03 06/30/03 09/30/03 12/31/03 OIBDA (1) $4,345 $1,195 $1,255 $1,001 $892 OIBDA margin (2) 31.2% 35.0% 34.4% 27.0% 25.1% Integration, AT&T Wireless Intangibles Amortization and Hurricane Costs $- $- $- $- $- OIBDA - normalized $4,345 $1,195 $1,255 $1,001 $892 OIBDA margin - normalized 31.2% 35.0% 34.4% 27.0% 25.1% Total Cellular/PCS Customers (3) 21,925 22,114 22,640 23,385 24,027 Net Customer Additions - Cellular/PCS 359 189 540 745 642 M&A Activity, Partitioned Customers and/or Other Adjs. (32) - (14) - - Churn - Cellular/PCS (4) 2.8% 2.6% 2.5% 2.8% 2.8% ARPU - Cellular/PCS (5) $52.14 $51.07 $53.47 $52.80 $49.38 Minutes Of Use Per Cellular/PCS Subscriber (6) 423 441 485 500 515 Licensed POPs - Cellular/ PCS (7) 219 235 236 236 236 Penetration - Cellular/PCS (8) 10.1% 10.0% 10.2% 10.6% 10.8% Total Cingular Interactive Customers 817 835 788 788 789 Net Customer Additions - Cingular Interactive 84 18 (47) 0 1 Capital Expenditures (9) $3,085 $327 $668 $773 $966 Selected Financial and Operating Data for Cingular Wireless - amounts in millions, except customer data in 000s 03/31/04 06/30/04 09/30/04 12/31/04 OIBDA (1) $1,103 $1,236 $1,033 $1,233 OIBDA margin (2) 30.8% 32.2% 26.7% 19.5% Integration, AT&T Wireless Intangibles Amortization and Hurricane Costs $- $- $43 $643 OIBDA - normalized $1,103 $1,236 $1,076 $1,478 OIBDA margin - normalized 30.8% 32.2% 27.8% 23.4% Total Cellular/PCS Customers (3) 24,618 25,044 25,672 49,132 Net Customer Additions - Cellular/PCS 554 428 657 1,699 M&A Activity, Partitioned Customers and/or Other Adjs. 37 (2) (29) 21,761 Churn - Cellular/PCS (4) 2.7% 2.7% 2.8% 2.6% ARPU - Cellular/PCS (5) $48.30 $50.75 $50.25 $49.51 Minutes Of Use Per Cellular/PCS Subscriber (6) 527 568 598 617 Licensed POPs - Cellular/PCS (7) 240 243 243 291 Penetration - Cellular/PCS (8) 10.9% 11.1% 11.4% 17.2% Total Cingular Interactive Customers 768 735 653 NA Net Customer Additions - Cingular Interactive (21) (33) (82) NA Capital Expenditures (9) $334 $783 $634 $1,698 Selected Financial and Operating Data for Cingular Wireless - amounts in millions, except customer data in 000s 03/31/05 06/30/05 09/30/05 12/31/05 OIBDA (1) $1,789 $2,133 $2,198 $2,279 OIBDA margin (2) 24.1% 27.6% 28.5% 29.3% Integration, AT&T Wireless Intangibles Amortization and Hurricane Costs $596 $649 $733 $727 OIBDA - normalized $1,894 $2,228 $2,443 $2,409 OIBDA margin - normalized 25.5% 28.9% 31.6% 31.0% Total Cellular/PCS Customers (3) 50,350 51,442 52,292 54,144 Net Customer Additions - Cellular/PCS 1,367 952 867 1,820 M&A Activity, Partitioned Customers and/or Other Adjs. (149) 140 (17) 32 Churn - Cellular/PCS (4) 2.2% 2.2% 2.3% 2.1% ARPU - Cellular/PCS (5) $49.60 $50.51 $49.65 $48.86 Minutes Of Use Per Cellular/PCS Subscriber (6) 643 705 727 727 Licensed POPs - Cellular/PCS (7) 293 294 294 294 Penetration - Cellular/PCS (8) 17.7% 18.0% 18.3% 18.9% Total Cingular Interactive Customers NA NA NA NA Net Customer Additions - Cingular Interactive NA NA NA NA Capital Expenditures (9) $971 $2,188 $1,346 $2,970 Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures - amounts in millions (unaudited) Full Year 2002 03/31/03 06/30/03 09/30/03 12/31/03 Net income (loss) 1,205 408 399 166 4 Plus: Interest expense 911 225 230 197 204 Plus: Minority interest expense 123 24 35 25 17 Plus: Equity in net loss of affiliates 274 74 78 90 91 Plus: Other, net (29) (26) (7) (4) (4) Plus: Provision (benefit) for income taxes 12 2 12 6 8 Operating income (loss) 2,496 707 747 480 320 Plus: Depreciation and amortization 1,849 488 508 521 572 OIBDA (1) $4,345 $1,195 $1,255 $1,001 $892 Plus: Integration costs (excluding depreciation and amortization) - - - - - Plus: Hurricane costs (excluding depreciation and amortization) - - - - - OIBDA - normalized (1) $4,345 $1,195 $1,255 $1,001 $892 Service revenues 13,922 3,414 3,643 3,701 3,559 Less: Mobitex data revenues 189 55 53 54 58 Service revenues used to calculate ARPU $13,733 $3,359 $3,590 $3,647 $3,501 Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures - amounts in millions (unaudited) 03/31/04 06/30/04 09/30/04 12/31/04 Net income (loss) 215 339 142 (495) Plus: Interest expense 198 199 200 303 Plus: Minority interest expense 27 41 20 (2) Plus: Equity in net loss of affiliates 108 95 98 114 Plus: Other, net (4) (1) - (11) Plus: Provision (benefit) for income taxes 6 (2) - (62) Operating income (loss) 550 671 460 (153) Plus: Depreciation and amortization 553 565 573 1,386 OIBDA (1) $1,103 $1,236 $1,033 $1,233 Plus: Integration costs (excluding depreciation and amortization) - - 43 245 Plus: Hurricane costs (excluding depreciation and amortization) - - - - OIBDA - normalized (1) $1,103 $1,236 $1,076 $1,478 Service revenues 3,583 3,833 3,873 6,313 Less: Mobitex data revenues 58 59 54 36 Service revenues used to calculate ARPU $3,525 $3,774 $3,819 $6,277 Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures - amounts in millions (unaudited) 03/31/05 06/30/05 09/30/05 12/31/05 Net income (loss) (240) 147 222 204 Plus: Interest expense 338 326 304 292 Plus: Minority interest expense 16 41 38 7 Plus: Equity in net loss of affiliates (2) (1) (1) (1) Plus: Other, net (20) (33) (10) (1) Plus: Provision (benefit) for income taxes 22 24 104 48 Operating income (loss) 114 504 657 549 Plus: Depreciation and amortization 1,675 1,629 1,541 1,730 OIBDA (1) $1,789 $2,133 $2,198 $2,279 Plus: Integration costs (excluding depreciation and amortization) 105 95 149 110 Plus: Hurricane costs (excluding depreciation and amortization) - - 96 20 OIBDA - normalized (1) $1,894 $2,228 $2,443 $2,409 Service revenues 7,419 7,719 7,721 7,779 Less: Mobitex data revenues 18 20 18 17 Service revenues used to calculate ARPU $7,401 $7,699 $7,703 $7,762

In 2003, to be consistent with industry practices, historical consolidated statements of income for all periods presented were reclassified to reflect billings to our customers for the Universal Service Fund (USF) and other regulatory fees as operating revenues and the costs related to payments into the associated regulatory funds as operating expenses. Similar reclassifications have also been made to 2003 and 2004 historical results for certain gross receipts taxes and other fees which are billed to our customers. Operating income and net income for all periods were unaffected.

Notes: (1) OIBDA is defined as operating income (loss) before depreciation and amortization. OIBDA differs from operating income (loss), as calculated in accordance with GAAP, in that it excludes depreciation and amortization. It differs from net income (loss), as calculated in accordance with GAAP, in that it excludes, as presented on our Consolidated Statement of Income: (1) depreciation and amortization, (2) interest expense, (3) minority interest expense, (4) equity in net income (loss) of affiliates, (5) other, net, and (6) provision (benefit) for income taxes. OIBDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. OIBDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with generally accepted accounting principles. Our calculation of OIBDA, as presented, may differ from similarly titled measures reported by other companies. (2) OIBDA margin is defined as OIBDA divided by service revenues. (3) Cellular/PCS customers include customers served through reseller agreements. (4) Cellular/PCS churn is calculated by dividing the aggregate number of cellular/PCS customers who cancel service during each month in a period by the total number of cellular/PCS customers. at the beginning of each month in that period. (5) ARPU is defined as cellular/PCS service revenues during the period divided by average cellular/PCS customers during the period. (6) Total Minutes Of Use Per Cellular/PCS Subscriber definition was changed effective with the 2Q05 reporting period. Prior to the change, the numerator was defined as Local Minutes of Use. Effective with this change, the numerator is now defined as including Local Minutes of Use and Outcollect Minutes of Use. (7) Licensed POPs refers to the number of people residing in areas where we and our partners have licenses to provide cellular or PCS service, including areas where we have not yet commenced service. Licensed POPs have been restated in periods 4Q04 through 2Q05 due to a reconciliation of respective licenses. Licensed POPs are based on estimated 2005 total US POPs of 297 million. (8) Penetration calculation for 4Q05 is based on licensed "operational" POP's of 286 million. (9) Capital expenditures reflect GAAP disclosure and accordingly do not include cash/capital contributed to our previous joint ventures with T-Mobile and AT&T Wireless (pre-merger). Cingular Wireless LLC Income Statement, Normalized - amounts in millions (unaudited)

The normalized financial data presented below exclude the impact of: 1) integration costs that are cash outlays, or specified non-cash charges, directly related to the acquisition of AT&T Wireless; 2) amortization of intangibles associated with the AT&T Wireless acquisition; and 3) costs related to impact of Hurricanes Katrina and Rita in the third and fourth quarters of 2005.

Integration costs would not have been incurred if not for the acquisition, as they support the utilization and/or disposal of the acquired assets. Integration costs are separately identifiable from business as usual outlays. Costs recognized in connection with certain rationalization plans approved by management have also been included beginning in the second quarter of 2005.

Examples of merger integration costs impacting expenses include (but are not limited to) the following:

* Network rationalization (write-offs and accelerated depreciation related to certain "overlap" network assets) * Sales distribution optimization (lease terminations, leasehold improvement write-offs/accelerated depreciation) * Workforce rationalization (severance, relocation, retention) * IT System/Application rationalization (system/platform consolidation, contract termination fees, third party support) * Real Estate space rationalization (lease terminations, leasehold improvements write-offs and accelerated depreciation, contract termination fees) Normalized 12/31/04 03/31/05 6/30/05 09/30/05 12/31/05 Operating revenues: Service revenues $6,313 $7,419 $7,719 $7,721 $7,779 Equipment sales 806 810 890 1,025 1,070 Total operating revenues 7,119 8,229 8,609 8,746 8,849 Operating expenses: Cost of services 1,685 2,141 2,274 2,285 2,326 Cost of equipment sales 1,244 1,295 1,230 1,203 1,341 Selling, general and administrative 2,712 2,899 2,877 2,815 2,773 Depreciation and amortization 988 1,184 1,075 1,053 1,133 Total operating expenses 6,629 7,519 7,456 7,356 7,573 Operating income 490 710 1,153 1,390 1,276 Interest expense 303 338 326 304 292 Minority interest expense (2) 16 41 38 7 Equity in net income (loss) of affiliates (114) 2 1 1 1 Other income, net 11 20 33 10 1 Income before income tax provision 86 378 820 1,059 979 Provision for income taxes 39 120 131 224 168 Net income 47 258 689 835 811 Selected Financial and Operating Data for Cingular Wireless - amounts in millions, except customer data in 000s Normalized 12/31/04 03/31/05 6/30/05 09/30/05 12/31/05 OIBDA (1) (in millions) $1,478 $1,894 $2,228 $2,443 $2,409 OIBDA margin (2) 23.4% 25.5% 28.9% 31.6% 31.0% Total Cellular/PCS Customers (3) (000's) 49,132 50,350 51,442 52,292 54,144 Net Customer Additions - Cellular/PCS (000's) 1,699 1,367 952 867 1,820 M&A Activity, Partitioned Customers and/or Other Adjs. (000's) 21,761 (149) 140 (17) 32 Churn - Cellular/PCS (4) 2.6% 2.2% 2.2% 2.3% 2.1% ARPU - Cellular/PCS (5) $49.51 $49.60 $50.51 $49.65 $48.86 Reconciliations of Normalized Financial Measures to Normalized OIBDA and Service Revenues - amounts in millions (unaudited) Normalized 12/31/04 03/31/05 6/30/05 09/30/05 12/31/05 Net income 47 258 689 835 811 Plus: Interest expense 303 338 326 304 292 Plus: Minority interest expense (2) 16 41 38 7 Plus: Equity in net (income) loss of affiliates 114 (2) (1) (1) (1) Plus: Other, net (11) (20) (33) (10) (1) Plus: Provision for income taxes 39 120 131 224 168 Operating income 490 710 1,153 1,390 1,276 Plus: Depreciation and amortization 988 1,184 1,075 1,053 1,133 OIBDA 1 1,478 1,894 2,228 2,443 2,409 Service revenues 6,313 7,419 7,719 7,721 7,779 Less: Mobitex data revenues 36 18 20 18 17 Service revenues used to calculate ARPU $6,277 $7,401 $7,699 $7,703 $7,762 Notes: (1) OIBDA is defined as operating income (loss) before depreciation and amortization. OIBDA differs from operating income (loss), as calculated in accordance with GAAP, in it excludes depreciation and amortization. It differs from net income (loss), as calculated in accordance with GAAP, in that it excludes, as presented on our Consolidated Statement of Income: (1) depreciation and amortization, (2) interest expense, (3) minority interest expense, (4) equity in net income (loss) of affiliates, (5) other, net, and (6) provision (benefit) for income taxes. OIBDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. OIBDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with generally accepted accounting principles. Our calculation of OIBDA, as presented, may differ from similarly titled measures reported by other companies. (2) OIBDA margin is defined as OIBDA divided by service revenues. (3) Cellular/PCS customers include customers served through reseller agreements. (4) Cellular/PCS customer churn is calculated by dividing the aggregate number of cellular/PCS customers who cancel service during each month in a period by the total number of cellular/PCS customers at the beginning of each month in that period. (5) ARPU is defined as cellular/PCS service revenues during the period divided by average cellular/PCS customers during the period. Cingular Wireless LLC Income Statement, Prior Quarter Normalized Reconciliations - amounts in millions (unaudited) Three months ended 09/30/04 GAAP Normalized Normalized Results Expenses Results Operating revenues: Service revenues $3,873 $- $3,873 Equipment sales 419 - 419 Total operating revenues 4,292 - 4,292 Operating expenses: Cost of services 1,107 (1) 1,106 Cost of equipment sales 585 - 585 Selling, general and administrative 1,567 (42) 1,525 Depreciation and amortization 573 - 573 Total operating expenses 3,832 (43) 3,789 Operating income 460 43 503 Interest expense 200 - 200 Minority interest expense 20 - 20 Equity in net income (loss) of affiliates (98) - (98) Other income (expense), net - - - Income (loss) before income tax provision 142 43 185 Provision (benefit) for income taxes - - - Net income (loss) 142 43 185 Three months ended 12/31/04 GAAP Normalized Normalized Results Expenses Results Operating revenues: Service revenues $6,313 $- $6,313 Equipment sales 806 - 806 Total operating revenues 7,119 - 7,119 Operating expenses: Cost of services 1,692 (7) 1,685 Cost of equipment sales 1,247 (3) 1,244 Selling, general and administrative 2,947 (235) 2,712 Depreciation and amortization 1,386 (398) 988 Total operating expenses 7,272 (643) 6,629 Operating income (153) 643 490 Interest expense 303 - 303 Minority interest expense (2) - (2) Equity in net income (loss) of affiliates (114) - (114) Other income (expense), net 11 - 11 Income (loss) before income tax provision (557) 643 86 Provision (benefit) for income taxes (62) 101 39 Net income (loss) (495) 542 47 Three months ended 3/31/05 GAAP Normalized Normalized Results Expenses Results Operating revenues: Service revenues $7,419 $- $7,419 Equipment sales 810 - 810 Total operating revenues 8,229 - 8,229 Operating expenses: Cost of services 2,144 (3) 2,141 Cost of equipment sales 1,295 - 1,295 Selling, general and administrative 3,001 (102) 2,899 Depreciation and amortization 1,675 (491) 1,184 Total operating expenses 8,115 (596) 7,519 Operating income 114 596 710 Interest expense 338 - 338 Minority interest expense 16 - 16 Equity in net income (loss) of affiliates 2 - 2 Other income (expense), net 20 - 20 Income (loss) before income tax provision (218) 596 378 Provision (benefit) for income taxes 22 98 120 Net income (loss) (240) 498 258 Three months ended 6/30/05 GAAP Normalized Normalized Results Expenses Results Operating revenues: Service revenues $7,719 $- $7,719 Equipment sales 890 - 890 Total operating revenues 8,609 - 8,609 Operating expenses: Cost of services 2,293 (19) 2,274 Cost of equipment sales 1,230 - 1,230 Selling, general and administrative 2,953 (76) 2,877 Depreciation and amortization 1,629 (554) 1,075 Total operating expenses 8,105 (649) 7,456 Operating income 504 649 1,153 Interest expense 326 - 326 Minority interest expense 41 - 41 Equity in net income (loss) of affiliates 1 - 1 Other income (expense), net 33 - 33 Income (loss) before income tax provision 171 649 820 Provision (benefit) for income taxes 24 107 131 Net income (loss) 147 542 689 Three months ended 9/30/05 GAAP Normalized Normalized Results Expenses Results Operating revenues: Service revenues $7,721 $- $7,721 Equipment sales 1,025 - 1,025 Total operating revenues 8,746 - 8,746 Operating expenses: Cost of services 2,464 (179) 2,285 Cost of equipment sales 1,203 - 1,203 Selling, general and administrative 2,881 (66) 2,815 Depreciation and amortization 1,541 (488) 1,053 Total operating expenses 8,089 (733) 7,356 Operating income 657 733 1,390 Interest expense 304 - 304 Minority interest expense 38 - 38 Equity in net income (loss) of affiliates 1 - 1 Other income (expense), net 10 - 10 Income (loss) before income tax provision 326 733 1,059 Provision (benefit) for income taxes 104 120 224 Net income (loss) 222 613 835 Nine months ended 09/30/04 GAAP Normalized Normalized Results Expenses Results Operating revenues: Service revenues $11,289 $- $11,289 Equipment sales 1,157 - 1,157 Total operating revenues 12,446 - 12,446 Operating expenses: Cost of services 3,045 (1) 3,044 Cost of equipment sales 1,627 - 1,627 Selling, general and administrative 4,402 (42) 4,360 Depreciation and amortization 1,691 - 1,691 Total operating expenses 10,765 (43) 10,722 Operating income 1,681 43 1,724 Interest expense 597 - 597 Minority interest expense 88 - 88 Equity in net income (loss) of affiliates (301) - (301) Other income (expense), net 5 - 5 Income (loss) before income tax provision 700 43 743 Provision (benefit) for income taxes 4 - 4 Net income (loss) 696 43 739 Twelve months ended 12/31/04 GAAP Normalized Normalized Results Expenses Results Operating revenues: Service revenues $17,602 $- $17,602 Equipment sales 1,963 - 1,963 Total operating revenues 19,565 - 19,565 Operating expenses: Cost of services 4,737 (8) 4,729 Cost of equipment sales 2,874 (3) 2,871 Selling, general and administrative 7,349 (277) 7,072 Depreciation and amortization 3,077 (398) 2,679 Total operating expenses 18,037 (686) 17,351 Operating income 1,528 686 2,214 Interest expense 900 - 900 Minority interest expense 86 - 86 Equity in net income (loss) of affiliates (415) - (415) Other income (expense), net 16 - 16 Income (loss) before income tax provision 143 686 829 Provision (benefit) for income taxes (58) 101 43 Net income (loss) 201 585 786 Three months ended 3/31/05 GAAP Normalized Normalized Results Expenses Results Operating revenues: Service revenues $7,419 $- $7,419 Equipment sales 810 - 810 Total operating revenues 8,229 - 8,229 Operating expenses: Cost of services 2,144 (3) 2,141 Cost of equipment sales 1,295 - 1,295 Selling, general and administrative 3,001 (102) 2,899 Depreciation and amortization 1,675 (491) 1,184 Total operating expenses 8,115 (596) 7,519 Operating income 114 596 710 Interest expense 338 - 338 Minority interest expense 16 - 16 Equity in net income (loss) of affiliates 2 - 2 Other income (expense), net 20 - 20 Income (loss) before income tax provision (218) 596 378 Provision (benefit) for income taxes 22 98 120 Net income (loss) (240) 498 258 Six months ended 6/30/05 GAAP Normalized Normalized Results Expenses Results Operating revenues: Service revenues $15,138 $- $15,138 Equipment sales 1,700 - 1,700 Total operating revenues 16,838 - 16,838 Operating expenses: Cost of services 4,437 (22) 4,415 Cost of equipment sales 2,525 - 2,525 Selling, general and administrative 5,954 (178) 5,776 Depreciation and amortization 3,304 (1,045) 2,259 Total operating expenses 16,220 (1,245) 14,975 Operating income 618 1,245 1,863 Interest expense 664 - 664 Minority interest expense 57 - 57 Equity in net income (loss) of affiliates 3 - 3 Other income (expense), net 53 - 53 Income (loss) before income tax provision (47) 1,245 1,198 Provision (benefit) for income taxes 46 205 251 Net income (loss) (93) 1,040 947 Nine months ended 9/30/05 GAAP Normalized Normalized Results Expenses Results Operating revenues: Service revenues $22,859 $- $22,859 Equipment sales 2,725 - 2,725 Total operating revenues 25,584 - 25,584 Operating expenses: Cost of services 6,901 (201) 6,700 Cost of equipment sales 3,728 - 3,728 Selling, general and administrative 8,835 (244) 8,591 Depreciation and amortization 4,845 (1,533) 3,312 Total operating expenses 24,309 (1,978) 22,331 Operating income 1,275 1,978 3,253 Interest expense 968 - 968 Minority interest expense 95 - 95 Equity in net income (loss) of affiliates 4 - 4 Other income (expense), net 63 - 63 Income (loss) before income tax provision 279 1,978 2,257 Provision (benefit) for income taxes 150 325 475 Net income (loss) 129 1,653 1,782 No integration costs were incurred prior to the third quarter of 2004. Quarterly amortization expense (in millions) associated with intangible assets recorded for the AT&T Wireless acquisition is as follows: $398 in 4Q04, $491 in 1Q05, $445 in 2Q05, $396 in 3Q05, $381 in 4Q05. Cingular Wireless LLC Balance Sheet - amounts in millions (unaudited) 12/31/05 12/31/04 Incr(Decr) % +/- (audited) Assets Current assets: Cash and cash equivalents 472 352 120 34.1% Accounts receivable - net of allowance for doubtful accounts 3,622 3,448 174 5.0% Inventories 536 690 (154) (22.3%) Prepaid expenses and other current assets 1,381 1,080 301 27.9% Total current assets 6,011 5,570 441 7.9% Property, plant and equipment - net 21,745 21,958 (213) (1.0%) Intangible assets - net 50,773 51,338 (565) (1.1%) Other assets 751 3,372 (2,621) (77.7%) Total assets 79,280 82,238 (2,958) (3.6%) Liabilities and members' capital Current liabilities: Debt maturing within one year 2,036 2,158 (122) (5.7%) Accounts payable and accrued liabilities 7,953 5,825 2,128 36.5% Total current liabilities 9,989 7,983 2,006 25.1% Long-term debt to affiliates 6,717 9,628 (2,911) (30.2%) Long-term debt to external parties 12,623 14,229 (1,606) (11.3%) Total long-term debt 19,340 23,857 (4,517) (18.9%) Other noncurrent liabilities 4,430 5,253 (823) (15.7%) Minority interests in consolidated entities 543 609 (66) (10.8%) Members' capital 44,978 44,536 442 1.0% Total liabilities and members' capital 79,280 82,238 (2,958) (3.6%)

First Call Analyst: FCMN Contact: